Posts Tagged 'Commercial Investment'

The old post office, Buckie

Commercial Property: Boost Your Buy-to-Let Portfolio!

Commercial property refers to buildings intended for business purposes rather than residential use.

These properties are designed to generate income through rent or capital appreciation, providing an alternative investment opportunity for BTL property investors and developers.

Examples of Commercial Property Types:

a. Retail properties: These include shopping centres, high-street shops, supermarkets, and out-of-town retail parks.

b. Offices: From small business centres to large office complexes, office properties cater to a wide range of businesses.

c. Industrial: Warehouses, factories, and distribution centres.

d. Leisure: Hotels, restaurants, bars, pubs, gyms, and cinemas.

e. Healthcare: Hospitals, clinics, care homes, surgeries,consulting rooms.

f. Semi – Commercial: These properties combine commercial property and residential spaces.

Advantages of Investing in Commercial Property:

a. Attractive rental yields: Commercial properties generally offer higher rental yields compared to residential properties.

b. Longer lease terms: Commercial tenants often sign longer leases, providing a stable and predictable income stream as long as they stay tenanted.

c. Diversification: Investing in commercial property can diversify your investment portfolio and reduce risk.

d. Capital growth potential: Well-located and well-managed commercial properties can offer significant capital appreciation over time.

Disadvantages of Investing in Commercial Property:

a. High entry costs: Commercial properties usually have higher acquisition costs than residential properties.

b. Increased management responsibilities: Commercial properties may require more intensive management and maintenance.

c. Market fluctuations: Economic factors and business cycles can impact commercial property demand and rental income.

d. Limited liquidity: Selling a commercial property may take longer than selling a residential property.

e. Interest rates and deposits may be higher and whilst interest only lending is available with some lenders it is only capital repayment.

f. Terms of the lease and strength of the tenant will dictate the appetite of the lender for the property.

Now that you have a better understanding of commercial property investment it’s time to explore your financing options.

At Searchlight Finance, we are here to assist you in finding the right finance loan for your commercial property investment.

Contact us today to discuss your needs and let us help you turn your commercial property dreams into reality.

Commercial Investment Mortgage


An established residential landlord in Birmingham wanted a commercial mortgage to buy his first commercial property which was rented out to a supermarket. His bank had said no as the existing tenant only had two years left on the lease and they wanted a longer lease. He had approached other brokers who had found finance which was double the amount he expected to pay.

Our Solution

The tenant had been in the property thirteen years and had just carried out an expensive fit-out. This gave us comfort that the tenant wanted to stay at the property. As our client wanted to retain the tenant, we suggested that a new lease be created at completion which would help secure finance and keep the tenant.


The £600,000 loan was agreed with a high street bank as the lease was now longer, at a rate which was very competitive.

Searchlight Finance Ltd is a broker not a lender.

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We are a credit broker not a lender.

Searchlight Finance Ltd is registered at 98, King Street, Knutsford, Cheshire, WA16 6HQ. Company Register number is 07929050.

Authorised and Regulated by the Financial Conduct Authority. Our FCA registration number is 743220. You can check via www.register.fca.org.

We are registered with the Information Commissioner’s Office, Z3109319 and you can check via www.ico.org.uk.

We conduct both regulated and unregulated business and therefore not all products provided through us are regulated by the Financial Conduct Authority.

We source finance from the whole of market and may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

Member of National Association of Commercial Finance Brokers (NACFB).